The Financial Advice Association Australia (FAAA) is advocating for increased precision in the Australian and New Zealand Standard Classification of Occupations (ANZSCO) concerning the financial advice sector. In response to the Australian Bureau of Statistics’ (ABS) consultation on the ANZSCO, the FAAA emphasized the importance of aligning the ANZSCO with the mandated educational prerequisites for financial advisors.

The proposed revisions to the ANZSCO outline financial advisers as a skill level 1 occupation, necessitating a bachelor’s degree, higher qualification, or a minimum of five years of relevant experience. However, the FAAA raised concerns regarding the description of education requirements, citing discrepancies with s921B of the Corporations Act and urging its rectification. The FAAA highlighted the significance of accurate information within the ANZSCO to ensure compliance with legal obligations for individuals pursuing a career as financial advisers.

Moreover, the FAAA recommended updates to the classification of the paraplanner occupation, noting a discrepancy in the classification of paraplanners under clerical and administrative workers, which may impact career progression towards becoming a financial adviser. By suggesting a clearer linkage between related occupations, the FAAA aims to enhance data quality and awareness among ANZSCO users.

While critical of the education criteria and paraplanner classification, the FAAA expressed support for the proposed renaming of financial adviser occupations within the ANZSCO. The FAAA commended the inclusion of financial advisers as a distinct unit group, emphasizing the alignment of occupation titles with the legal framework outlined in the Corporations Act. This adjustment is expected to provide a more accurate representation of the roles and responsibilities of financial advisers, consequently benefiting stakeholders relying on ANZSCO data, including educational institutions attracting international students.

In a significant development, the ABS has tentatively accepted the FAAA’s proposal to incorporate the protected terms “financial adviser/financial planner” as the principal title for the occupation unit, signaling progress towards enhancing the ANZSCO’s reflection of industry standards. The FAAA underscored the pivotal role of the ANZSCO in informing governmental decisions across various sectors such as immigration, education, financial literacy, and financial services.

The revision process for the ANZSCO is slated for completion by December 2024. The FAAA’s proactive engagement in advocating for ANZSCO accuracy underscores its commitment to ensuring regulatory alignment and professional standards within the financial advice industry. By striving for precision in occupation classifications, the FAAA aims to bolster transparency, regulatory compliance, and career pathways within the financial advice profession.